side the palace walls, where they found themselves
in the pretty flower gardens.

"I'd feel all right, mate, if I could have a smoke," remarked the
old sailor to the child, "but that's a thing as can't be did here in
the water."

"Why not?" asked Merla, who overheard him.

"A pipe has to be lighted, an' a match wouldn't burn," he replied.

"Try it," suggested the mermaid. "I do not mind your smoking at all,
if it will give you pleasure."

"It's a bad habit I've got, an' I'm too old to break myself of it,"
said Cap'n Bill. Then he felt in the big pocket of his coat and took
out a pipe and a bag of tobacco. After he had carefully filled his
pipe, rejoicing in the fact that the tobacco was not at all wet, he
took out his matchbox and struck a light. The match burned brightly,
and soon the sailor was puffing the smoke from his pipe in great
contentment. The smoke ascended through the water in the shape of
bubbles, and Trot wondered what anyone who happened to be floating
upon the surface of the ocean would think to see smoke coming from
the water.

"Well, I find I can smoke, all right," remarked Cap'n Bill, "but it
bothers me to understand why."

"It is because of the air space existing between the water and
everything you have about you," explained Merla. "But now, if you
will come this way, I will take you to visit some of our neighbors."
They passed over the carpet of sea flowers, the gorgeous blossoms
swaying on their stems as the motion of the people in the water
above them disturbed their repose, and presently the three entered
the dense shrubbery surrounding the palace. They had not proceeded
far when they came to a clearing among the bushes, and here Merla
paused.

Trot and Cap'n Bill paused, too, for floating in the clear water was
a group of beautiful shapes that the child thought looked like molds
of wine jelly. They were round as a dinner plate, soft and
transparent, but tinted in such lovely hues that no artist's brush
has ever been able to imitate them. Some were deep sapphire blue;
others rose pink; still others a delicate topaz color. They seemed
to have neither heads, eyes nor ears, yet it was easy to see they
were alive and able to float in any direction they wished to go. In
shape they resembled inverted flowerpots, with the upper edges
fluted, and from the centers floated what seemed to be bouquets of
flowers.

"How pretty!" exclaimed Trot, enraptured by the sight.

"Yes, this is a rare va